Bitcoin Association Switzerland reports that, according to the Swiss Federal Tax Administration, no VAT applies to bitcoin in Switzerland.The transfer of bitcoin doesn’t constitute delivery of goods or services, and therefore it’s not subject to VAT.“This is the most reasonable way to classify bitcoins in the context of VAT, and we are fortunate that the tax administration agrees with our view,” says Luzius Meisser, president of Bitcoin Association Switzerland.“Bitcoin is a currency, and thus should also be treated like a currency.”In February 2014, a group of three Swiss Bitcoin organizations jointly wrote a formal inquiry to the Swiss Federal Tax Administration to clarify the legal situation of bitcoin with regards to VAT.The tax authority replied that bitcoin is to be treated just like any other payment option – trading bitcoin for Swiss francs is seen as similar to trading euros for Swiss francs.Furthermore, the transaction fees charged by bitcoin exchanges are VAT-free.“This is excellent news for bitcoin in Switzerland as it provides the legal certainty we need to professionally operate our business,” says Niklas Nikolajsen, CEO of Swiss bitcoin exchange and service provider Bitcoin Suisse AG.Other European nations have made similar decisions.

Recently, the Spanish tax office confirmed that, under Spanish law, bitcoin has been recognized as a financial service, and therefore the cryptocurrency isn’t subject to the nation's 21 percent VAT.In the European Union, which Switzerland is not part of, there is not yet clarity on the VAT status of bitcoin.In June, however, the European Court of Justice in Luxembourg is expected to hold a hearing on the matter, Handelszeitung reports.“We hope that the Swiss decision can serve as an inspiration for Europe,” said Mathieu Buffenoir, vice-president of Bitcoin Association Switzerland.Bitcoin is now confirmed to be exempt from VAT in Switzerland, but other regulations apply.etoro bitcoin tradingSwitzerland considers digital currencies such as bitcoin equivalent to any other foreign currency.ethereum goalThis means that the professional operation of bitcoin trading platforms constitutes financial intermediation with the requirement to comply with both the Banking Act and the Anti Money Laundering (AML) Act.bitcoin vkontakte

Recently ECUREX, a digital finance marketplace for professional traders and financial institutions headquartered in Zurich, announced that it has become the first digital currency exchange platform to be fully compliant with both.Switzerland, a modern country in the middle in Europe with a world-class financial system, a stable regulatory environment, and a thriving economy unencumbered by the often lengthy and ineffectual bureaucratic procedures of the European Union, is emerging as a good location for bitcoin businesses.In related news reported by Handelszeitung, preparations are under way for the establishment of the first bitcoin bank in Switzerland, according to multiple sources in the financial sector.bitcoin techcrunchThe bitcoin bank would be set up as a normal commercial bank connected to the banking network and compliant with the Banking and AML Acts, and able to offer all standard banking services.bitcoin mining setup youtube

Bitcoin Magazine is following the story and will report in detail once more information is available.Photo by Antana / CC BY-SA 2.0BitcoinWhy a Swiss Tax Haven is Embracing BitcoinDavid MeyerMunicipal bosses in the Swiss town of Zug have decided to accept the bitcoin cryptocurrency for payments up to the value to 200 francs ($206), in a new pilot project.Zug, traditionally known for its low taxes (about half the Swiss average) and its kirschwasser cherry brandy, is these days trying to brand itself as the slightly sinister-sounding "Crypto Valley"—it's home to more than 15 financial technology (fintech) firms, and now it wants to dive even deeper into the future of virtual currency.Dolfi Müller, Zug's social-democratic mayor, said the town wanted to express its openness to new technologies and offer its support to the region's fintech sector, by letting people use bitcoin to pay for some municipal services.bitcoin volume meaning

Get Data Sheet, Fortune’s technology newsletter.The town council decided last week to start accepting bitcoin from July 1, and at the end of the year it will look at the lessons it has learned from the exercise.It will then decide whether Zug should accept bitcoin and other cryptocurrencies for more municipal services in the future.Bitcoin allows people to make payments without having to involve centralized connection mechanisms such as banks.how to mine bitcoin on iosIt is fairly good at protecting anonymity, but uses a public ledger system, called the blockchain, that is excellent at keeping track of transactions.It's probably highly relevant that bitcoin's transaction costs are low.trade bitcoin nzZug's municipal bosses are currently looking for ways to cut costs, as the implications of levying very low taxes start to bite.For more on bitcoin, watch: However, not everyone is convinced that Zug's experiment is a good idea.bitcoin on fedora

The local branch of the conservative-nationalist SVP party wrote to Zug's greater council, asking what the legal basis was for the town council to be deciding on which currencies it could accept, and what projections had been made for the rise or fall in bitcoin's value—it is, after all, a pretty speculative currency.Legal The European Union has passed no specific legislation relative to the status of the bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin.VAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services.[1]:European Union In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the ‘bitcoin’ virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to ‘currency, bank notes and coins used as legal tender’", making bitcoin a currency as opposed to being a commodity.[2][3]

According to judges, the tax shouldn’t be charged because bitcoins should be treated as a means of payment.[4]According to the European Central Bank, traditional financial sector regulation is not applicable to bitcoin because it does not involve traditional financial actors.[5]:5Others in the EU have stated, however, that existing rules can be extended to include bitcoin and bitcoin companies.[6]The European Central Bank classifies bitcoin as a convertible decentralized virtual currency.[5]:6In July 2014 the European Banking Authority advised European banks not to deal in virtual currencies such as bitcoin until a regulatory regime was in place.[7]In 2016 the European Parliament's proposal to set up a taskforce to monitor virtual currencies to combat money laundering and terrorism, passed by 542 votes to 51, with 11 abstentions, has been sent to the European Commission for consideration.[8]The European Commission also notably presented a "parallel" proposal aimed at preventing tax evasion techniques as revealed in the Panama Papers.[9]